FUTIAN District has released the list of the first batch of agency construction projects funded by the government, which means more capable companies will be involved in the undertaking of public projects.

The first batch of four projects include the demolition project of the comprehensive classroom building of Huanggang Middle School, the construction of Qiaoxiang Cultural Center, the waterlogging renovation project in Xiangmei Neighborhood and the furnishing project of the affordable commercial residential houses of Baoneng City Mansion. The total investment is 1.344 billion yuan (US$197.8 million), covering education, culture, environment and affordable housing.

The first batch of agency projects, operated in a full-chain market-based pattern, are bound by contracts between two concerned parties who will settle the total budget and guarantee the quality and schedule of the projects. Meanwhile, an insurance mechanism will be introduced to supervise the whole construction process and to cover the maintenance of the projects.

According to the Development and Reform Bureau of Futian District, Futian will, based on a new type of agency pattern, introduce high-level agency enterprises by establishing a qualifying system, improving the agency credibility system and increasing the threshold of companies undertaking agency projects.

The responsibilities of each company will be divided and clarified in their contracts. Futian will also introduce market-based risk control and management systems, including guarantee and insurance systems, to hold each company accountable for its responsibilities.

Agency companies will enjoy legal rights when undertaking government-invested projects, and in this way, the institutional transaction cost will be reduced.